Summary
Corning Incorporated (GLW) reported third-quarter 2019 results showing a slight decrease in net sales to $2.934 billion from $3.008 billion in the prior year. Net income attributable to Corning Incorporated also saw a significant decline, falling to $337 million from $625 million year-over-year, resulting in diluted earnings per share of $0.38 compared to $0.67 in the prior year's third quarter. This decrease was primarily attributed to lower translated earnings contract gains and higher costs related to accelerated depreciation and asset write-offs in the Display Technologies and Optical Communications segments. Despite the sequential decline in the third quarter, year-to-date net sales increased by 5% to $8.686 billion. The company experienced growth in Environmental Technologies and Life Sciences segments, while Display Technologies and Optical Communications saw mixed performance. Management highlighted strategic investments in core technologies and manufacturing platforms, with a new Strategy and Growth Framework for 2020-2023 emphasizing continued investment and shareholder returns. The company's liquidity remains strong, with approximately $1.0 billion in cash and cash equivalents at the end of the quarter.
Financial Highlights
49 data points| Revenue | $2.93B |
| Cost of Revenue | $1.92B |
| Gross Profit | $1.02B |
| SG&A Expenses | $369.00M |
| Operating Income | $365.00M |
| Net Income | $337.00M |
| EPS (Basic) | $0.40 |
| EPS (Diluted) | $0.38 |
| Shares Outstanding (Basic) | 775.00M |
| Shares Outstanding (Diluted) | 897.00M |
Key Highlights
- 1Net sales for the third quarter of 2019 were $2.93 billion, a 2% decrease year-over-year, primarily driven by declines in Display Technologies and Optical Communications.
- 2Net income attributable to Corning Incorporated decreased significantly to $337 million in Q3 2019 from $625 million in Q3 2018, impacting diluted EPS which fell to $0.38 from $0.67.
- 3Year-to-date (nine months) net sales increased by 5% to $8.69 billion, indicating growth over the longer term despite the quarterly dip.
- 4The Environmental Technologies segment showed strong performance with a 20% increase in net sales for the quarter, driven by gasoline particulate filters.
- 5Optical Communications segment experienced a 10% decrease in Q3 net sales, primarily due to market weakness and reduced capital spending by carriers.
- 6Corning is focusing on its 2020-2023 Strategy and Growth Framework, planning to invest $10-12 billion for growth and return $8-10 billion to shareholders.
- 7The company maintained a strong liquidity position with approximately $1.0 billion in cash and cash equivalents as of September 30, 2019, and was in compliance with its debt covenants.